COO Of US Physical Therapy Makes $142K Sale

Graham Reeve, COO at US Physical Therapy USPH, reported an insider sell on August 21, according to a new SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Reeve sold 1,724 shares of US Physical Therapy. The total transaction value is $142,230.

At Thursday morning, US Physical Therapy shares are down by 0.0%, trading at $83.11.

Delving into US Physical Therapy's Background

US Physical Therapy Inc through its subsidiaries operates outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. The principal sources of payment for the clinics' services are managed care programs, commercial health insurance, Medicare/Medicaid, workers' compensation insurance, and proceeds from personal injury cases. Its operating segment includes Physical therapy operations and Industrial injury prevention services. The company generates maximum revenue from the Physical therapy operations segment.

A Deep Dive into US Physical Therapy's Financials

Revenue Growth: US Physical Therapy's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 10.37%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 20.25%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): US Physical Therapy's EPS is below the industry average. The company faced challenges with a current EPS of 0.47. This suggests a potential decline in earnings.

Debt Management: US Physical Therapy's debt-to-equity ratio is below the industry average. With a ratio of 0.53, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 83.95, US Physical Therapy's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 1.99, US Physical Therapy's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 19.93, the company's market valuation exceeds industry averages.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Uncovering the Importance of Insider Activity

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of US Physical Therapy's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.